TranSwitch (News - Alert) Corporation (Nasdaq: TXCC) (the "Company"), a leading
provider of semiconductor solutions for the converging voice, data and
video network, today announced that it received a letter on December 4,
2012, from the Nasdaq Capital Market indicating that the Company no
longer meets the minimum bid price requirement for continued listing on
the Nasdaq Capital Market as set forth in Nasdaq Listing Rule 5550(a)(2)
(the "Rule"). The notice stated that the bid price of the Company's
common stock has closed below the required minimum $1.00 per share for
the previous 30 consecutive business days. The Nasdaq notice has no
immediate effect on the listing of the Company's common stock.

In accordance with Nasdaq rules, the Company has 180 calendar days to
regain compliance with the Rule. If at any time before June 3, 2013, the
bid price of the Company's common stock closes at $1.00 per share or
higher for a minimum of 10 consecutive business days, Nasdaq will notify
the Company that it has regained compliance with the Rule.

In the event the Company does not regain compliance with the Rule prior
to June 3, 2013, Nasdaq will notify the Company that its securities are
subject to delisting. However, the Company may be eligible for
additional time. To qualify, the Company will be required to meet the
continued listing requirement for market value of publicly held shares
and all other initial listing standards for the Nasdaq Capital Market,
with the exception of the bid price requirement, and will need to
provide written notice of its intention to cure the deficiency during
the second compliance period. If such application to the Nasdaq Capital
Market is approved, then the Company may be eligible for an additional
grace period. However, if it appears to Nasdaq that the Company will not
be able to cure the deficiency, or if the Compny is otherwise not
eligible, Nasdaq will provide notice that the Company's securities will
be subject to delisting. The Company may, at that time, appeal the
Nasdaq determination to a Nasdaq Hearing Panel. Such an appeal, if
granted, would stay delisting until a Panel ruling.

The Company is considering actions that it may take in response to this
notification in order to regain compliance with the continued listing
requirements.

About TranSwitch Corporation

TranSwitch Corporation (TXCC) designs, develops and supplies innovative
integrated circuit (IC) and intellectual property (IP) solutions that
provide core functionality for voice, data and video communications
equipment for network, enterprise and customer premises applications. We
provide integrated multi-core network processor System-on-a-Chip (SoC)
solutions and software solutions for Fixed, 3G and 4G Mobile, VoIP and
Multimedia Infrastructures. For the customer-premises market, we offer
interoperable connectivity solutions that provide a bridge between HDMI
and DisplayPort and enable the distribution and presentation of
high-definition (HD) content for consumer electronic and personal
computer markets and also provide a family of communications processors
that provide best-in-class performance for a range of applications.
Overall, we have over 100 active customers, including the leading global
telecom equipment providers, semiconductor and consumer product
companies. For more information, please visit www.transwitch.com.

TranSwitch Forward Looking Statements

Forward-looking statements in this release, including statements
regarding management's expectations for future financial results and the
markets for TranSwitch's products, if any, are made pursuant to the safe
harbor provisions of the Private Securities Litigation Reform Act of
1995. Investors are cautioned that these forward-looking statements
regarding TranSwitch, its operations and its financial results, involve
risks and uncertainties that could cause actual results to differ
materially from those contained in the forward-looking statements,
including without limitation the risks associated with downturns in
economic conditions generally and in the telecommunications and data
communications markets and the semiconductor industry specifically;
risks in product development and market acceptance of and demand for
TranSwitch's products and products developed by TranSwitch's customers;
risks associated with foreign sales and high customer concentration;
risks associated with competition and competitive pricing pressures;
risks in technology development and commercialization; risks of failing
to attract and retain key managerial and technical personnel; risks
relating to TranSwitch's available cash; risks associated with acquiring
new businesses; risks of dependence on third-party VLSI fabrication
facilities; risks related to intellectual property rights and
litigation; and other risks detailed in TranSwitch's filings with the
Securities and Exchange Commission.

TranSwitch expressly disclaims any obligation or undertaking to release
publicly any updates or revisions to any such statements to reflect any
change in expectations or any change in events, conditions or
circumstances on which any such statement is based.